IOTA (IOTA) defended a critical falling wedge support on Wednesday, January 28, signaling early signs of selling exhaustion after weeks of sustained downside pressure. The move places the token at a key technical inflection point, with traders closely monitoring whether the structure can transition into a broader stabilization phase.

The crypto analyst Jonathan Carter points out that the series of attempts to hold the lower edge of the wedge indicate that the momentum of the bears is slowing down, even as the price remains below crucial resistance levels. While no breakout is yet confirmed, the pattern has compressed the price, making room for a significant move.

Also Read: IOTA Poised for Breakout? Analysts Eye Powerful Rally to $0.19

IOTA Maintains Structural Support With $0.405 in Focus

In the event that IOTA rises above the upper edge of the wedge, technical indicators suggest that the token will rise through the following targets: $0.100, $0.120, and $0.150.

The rise of the token will depend on the increase in volume, and the next resistances will be at $0.175, $0.205, and $0.255. Though the rise to $0.315 and $0.405 will be speculative.

Source: Jonathan Carter X Post

From a risk management point of view, it is critical that the price remain above this mark of $0.068. If it does not, then the bears will come back into the market, and this falling wedge pattern will be broken, making IOTA a potentially bearish market once again. Until such a time comes, it is likely that traders will continue to be cautious.

Momentum Indicators Signal Cautious Optimism

According to TradingView data as of January 28, IOTA continues to be stuck in the larger bearish pattern, despite holding on to the key supports.

The initial attempts to move back to the $0.11-$0.12 range were rejected, indicating a lack of conviction in the buying. The price has been stuck at the $0.086 level, indicating a lack of volatility.

Source: TradingView

The momentum signals reflect a position of cautious neutrality. The Relative Strength Index is currently moving in the mid-40s, below the 50 level, indicating a small amount of bullish strength.

The MACD has rolled over, and bearish histogram bars are beginning to appear, indicating a loss of momentum on the upside unless a large increase in trading volume appears.

Also Read: IOTA Weakens as Liquidity Zone Targets Shift to $0.076–$0.080 Support